IHSG Slips 4.57% as Middle East War and Indonesia Outlook Downgrade Hit the Market

Jakarta — The Jakarta Composite Index (IHSG) closed lower, dropping 4.57 percent or 362.70 points to 7,577.06 on Wednesday afternoon, 4 March 2026. According to VIVA’s monitoring of Stockbit, the IHSG began Session II with a sharp correction, falling to around 7,493.27 and hitting the intraday low. Turnover reached Rp 29.61 trillion, with a transaction volume of Rp 531.27 million and a total of 3.30 million trades.

All sector indices came under pressure. The basic materials sector led the declines, down 7.24 percent, followed by transportation down 7.23 percent, and cyclicals down 6.69 percent. The industrials sector fell 5.38 percent, energy down 4.64 percent, technology down 4.26 percent, infrastructure down 4.84 percent, consumer staples down 4.13 percent, property down 3.87 percent, financials down 3.18 percent, and health down 2.79 percent.

“Along with most Asian equity indices, the IHSG was pressured by negative sentiment from the intensifying Middle East conflict, prompting global investors to avoid risk assets,” said a Phintraco Sekuritas analyst in his daily note on Wednesday, 4 March 2026.

In addition, Fitch Ratings downgraded Indonesia’s outlook from stable to negative, although the rating remains at BBB, adding pressure on domestic equity moves. The outlook revision reflects increasing policy uncertainty, as well as concerns about the consistency and credibility of policy amid centralised decision-making.

Concerns about the potential long-term impact of the war on inflation and the economy persist. Energy-related commodity prices continued to rise, fuelling fears of higher inflation.

“Investors are recalibrating gold demand as a safe-haven asset amid the intensifying US-Iran conflict and the sharp strengthening of the US dollar,” the Phintraco Sekuritas analyst added.

Technically, there was a widening of the negative MACD histogram and the stochastic RSI weakened near oversold territory. The IHSG briefly slid to 7,486, approaching 7,481 which had been touched at the end of January 2026.

All 45 leading stocks cooled broadly. Amman Mineral International (AMMN) fell 10.62% to 6,100; Indah Kiat Pulp & Paper (INKP) fell 10.16% to 9,725; Vale Indonesia (INCO) dropped 10.07% to 6,475.